Every parent wants their kids to have it easier than they did. Especially if they've built an empire, right? But handing it off isnât just about cash. Itâs about keeping the family legacy alive. Itâs like passing the torch, but without the risk of burning your fingers. Thatâs where succession planning comes in â itâs the roadmap to a smooth handoff, so the business doesn't crumble and the family stays strong.
Recently, Indian billionaire Gautam Adani revealed details of his succession plan for his vast business empire. When a tycoon of his stature discusses a sensitive topic like this, investors should sit up and take notice. If you're in it for the long haul and want to pass your wealth down to the next generation, you need to pay attention to succession planning in publicly traded companies. Let's break it down.
WHAT IS SUCCESSION PLANNING?
Most people think of wills and trusts when they hear âsuccession planning.â While wills and trusts are helpful for individuals transferring wealth to the next generation, succession planning in corporations is a much more intricate process. Itâs a key part of a companyâs strategy, ensuring a seamless transition of leadership at all levels. At the top, succession planning not only guarantees a smooth change of control but also can alter how a company operates and how it treats minority shareholders.
Succession planning in the corporate world is far more complex than simply passing on assets to a chosen individual. It often involves the next generation of a promoter stepping up to take the reins.
In todayâs world, however, itâs increasingly common for a promoter to entrust the responsibility of running the business to a professional manager from outside the family, rather than a biological heir. In some instances, promoter-managers are replaced by a team of professional managers. Each of these scenarios warrants a closer examination.
ãã®èšäºã¯ Beyond Market ã® August 2024 çã«æ²èŒãããŠããŸãã
7 æ¥éã® Magzter GOLD ç¡æãã©ã€ã¢ã«ãéå§ããŠãäœåãã®å³éžããããã¬ãã¢ã ã¹ããŒãªãŒã9,000 以äžã®éèªãæ°èã«ã¢ã¯ã»ã¹ããŠãã ããã
ãã§ã«è³Œèªè ã§ã ?  ãµã€ã³ã€ã³
ãã®èšäºã¯ Beyond Market ã® August 2024 çã«æ²èŒãããŠããŸãã
7 æ¥éã® Magzter GOLD ç¡æãã©ã€ã¢ã«ãéå§ããŠãäœåãã®å³éžããããã¬ãã¢ã ã¹ããŒãªãŒã9,000 以äžã®éèªãæ°èã«ã¢ã¯ã»ã¹ããŠãã ããã
ãã§ã«è³Œèªè ã§ã? ãµã€ã³ã€ã³
PRUDENT PRACTICES
Banks worldwide navigate a complex balancing act, steering economies toward growth while safeguarding financial stability through thoughtful management of interest rates and credit risks
RETAIN ROULETTE
Inexperienced investors spin the market wheel, chasing dizzying valuations and risking a bubble burst
UNRAVELED THREADS
Bangladesh's crisis disrupts global textiles, offering India a potential opportunity, but production constraints limit its gains
PASSING THE BATON
Succession planning helps ensure uninterrupted leadership
RISKY BUSINESS?
SEBI's efforts to protect retail investors from derivatives market risks could inadvertently dampen market volumes
INFLATION-PROOF YOUR CHILD'S FUTURE
Inflation might be stealing your child's future, but children's mutual funds can be their superhero
EMBRACE UNCERTAINTY, SAYS MARKS
Howard Marks urges investors to embrace uncertainty, long-term thinking, and focus on controllables, shunning in his memo âThe Folly of Certaintyâ
IMPORTANT JARGON
70% OF INDIVIDUAL INTRADAY TRADERS IN THE EQUITY CASH SEGMENT MAKE LOSSES, FINDS SEBI STUDY
AN ASCENT T'O NEW HEIGHTS
The IMF predicts India's economy to reach 55 trillion by 2047, driven by various economic indicators showing positive growth and government initiatives
CARRY TRADE CRASH: GLOBAL MARKETS REEL
Japanâs Policy Shift Sends Shockwaves Through Global Markets, Including India, as Yen Carry Trade Disintegrates